Worley Limited · ASX:WOR
Worley — WorleyParsons — Investor Day (October 2013)
194 slides from Worley's investor day presentation, Oct 10, 2013
Slide 1: OneWay moment – proactively evolving our approach
For personal use only OneWay™ moment – proactively evolving our approach Barry Bloch
Slide 2: Commitment to zero harm
Commitment to zero harm For personal use only We operate across a wide range of environments and risk profiles We recognise that to achieve zero harm requires the unrelenting commitment of our leadership We recognize that as we grow and move into new markets we must maintain our strong record 2
Slide 3: Performance through leadership
Performance through leadership For personal use only Commitment starts at the top The Board and management team are committed to drive for zero harm Board HSE subcommittee established Executive and non-executive directors follow a defined program of site visits Site selection is deliberate t
Slide 4: Step change in safety
Step change in safety For personal use only Best practice comes from conscious learning Risk is assessed at multiple levels on projects Cold eye reviews leverage global expertise locally Embed critical HSE requirements into project processes to maximise delivery success 4
Slide 5: Our safety initiatives
Our safety initiatives For personal use only Active campaigns reinforce HSE Signatory to the UN Decade of Action for Road Safety 2011-2020 Responding to significant road safety challenges in South Africa, we implemented: • Journey management processes • 5-star NCAP rated vehicles • In-vehicle mo
Slide 6: OneWay: zero harm to people and assets
For personal use only “Each of us, must understand how OneWay™ applies to our roles and be fully committed to zero harm outcomes….” Andrew Wood, CEO Zero harm to people and assets Zero environmental incidents 6
Slide 7: Sectors, customers, capability, diversification
For personal use only sectors Local/global customers capability diversification 7
Slide 8: Welcome
For personal use only Andrew Wood Welcome
Slide 9: Agenda
Agenda For personal use only ► Welcome ► US syndication ► Organisation changes ► Group outlook 2
Slide 10: Group outlook
Group outlook For personal use only Commenting on the outlook for the WorleyParsons Group, Mr Andrew Wood said: “While recognizing the uncertainties in world markets, we expect our geographic and sector diversification to provide a solid foundation to deliver increased earnings in FY2014. “We have a
Slide 11: Sectors, customers, capability, diversification
For personal use only sectors Local/global customers capability diversification
Slide 12: Strategy update
For personal use only Strategy update Iain Ross
Slide 13: Agenda
Agenda For personal use only ► Strategy update ► New Ventures group ► Consolidation of sectors ► Sector outlook ► Recent acquisitions 2
Slide 14: For personal use only
3 For personal use only
Slide 15: Continue to focus on
Continue to focus on For personal use only ► Simplification and discipline ► Winning the right work & executing it well ► Engaging closely with our customers ► Pursuing new markets for business opportunities 4
Slide 16: Listening to our customers
Listening to our customers Listening to our customers For personal use only Understand • Problems and opportunities • How we can help them succeed Focus on • Who are our customers Image here • Consistent project delivery excellence 5 5
Slide 17: Innovation and New Ventures
Innovation and For personal use only . New Ventures New opportunities for growth Gather and capture new, non traditional ideas Nurture and grow Successfully launch as material, stable businesses 6
Slide 18: Global Advisory and Consulting
Global Advisory and Consulting For personal use only ► Customer demand ► Real project experience ► Value adding ► Entry points into new markets Advisory • Strategic and tactical advice to asset owners • Engagement at the executive management/enterprise level • Building on our Evans and Peck business
Slide 19: Sector reorganization
Sector reorganization For personal use only ► Responding to our customers’ changing needs, a single point of contact – across all Minerals, Metals sectors Hydrocarbons & Chemicals ► Consolidated into three Resource Infrastructure sectors • Hydrocarbons Infrastructure • Minerals, Metals & Chemicals •
Slide 20: FY14 sector focus areas
For personal use only FY14 sector focus areas 9
Slide 21: Hydrocarbons
Hydrocarbons For personal use only Harness emergent LNG market Lead full field development of unconventional oil and gas Customer relationship development for national oil companies and selected independents East Africa onshore fast track development support Capitalise on the emergence of
Slide 22: Minerals, Metals & Chemicals
Minerals, Metals & Chemicals For personal use only Continue to globalize Minerals, Metals and Chemicals Expand Chemicals sector with focus on Middle East and the US, leveraging our strength in China Capture full life cycle resource project opportunities, utilizing leading underground developme
Slide 23: Infrastructure
Infrastructure For personal use only Resource and energy infrastructure and power • Water UCOG and mining Early positioning via enabling capabilities Local delivery in Sub Saharan Africa and Latin America Restoration and remediation global service Expand Improve • Rail, ports and water • F
Slide 24: Acquisitions adding value
Acquisitions adding value For personal use only 13
Slide 25: In summary
In summary For personal use only ► We remain committed to our Vision 2017 ► We believe our strategy is robust and continue to make good progress against it ► Customers remain at the heart of everything we do ► Expect improved earnings FY14 across all sectors ► Exciting new business opportunities ► L
Slide 26: Sectors, customers, capability, diversification
For personal use only sectors Local/global customers capability diversification
Slide 27: US renaissance
For personal use only US renaissance Chris Parker
Slide 28: Agenda
Agenda For personal use only ► The landscape today ► Focus on petrochemicals and chemicals ► Power – new gas projects and decommissioning of coal-fired and nuclear ► LNG export – market potential for new projects ► Unconventional oil and how it relates to US refineries ► Future unconventional produc
Slide 29: The US renaissance opportunity
The US renaissance opportunity For personal use only Increased onshore oil and gas Infrastructure production Oil Gas Crude storage and transportation Gas processing Transmission Refining NGLs Ammonia Methanol Power LNG Petro- Derived Fertilizers chemicals chemicals 3 3
Slide 30: Chemicals industry investment
Chemicals industry investment For personal use only COMPOSITION OF NEW CAPITAL INVESTMENT BY INCREMENTAL US CHEMICAL INDUSTRY CAPEX CHEMICAL INDUSTRY SEGMENT THROUGH 2020 ARISING FROM SHALE GAS‐INDUCED RENEWED COMPETITIVENESS $18.0 $16.0 $14.0 $12.0 Billions USD $10.0 $8.0 $6.0 $4.0 $2.0 $0.0 2013 2
Slide 31: Chemicals projects
Chemicals projects For personal use only US 1.3 MTPA methanol plant, EPCM services Celanese ► Award followed successful completion of FEED ► Workshare Houston-China USGC petrochemicals plants, IPMT for FEED Chevron Phillips Chemical ► 1.5 MTPA ethane cracker ► Two 0.5 MPTA polyethylene plants Integr
Slide 32: Chemicals projects: BASF partnership
Chemicals projects For personal use only North American partnership BASF Corporation Current Business Unit Location Scope Battery materials Louisville, KY FEED Agricultural chemicals Beaumont, TX FEED Infrastructure Freeport, TX Pre-FEED Petrochemicals Port Arthur, TX FEED Engineering plastics Geism
Slide 33: Increased US domestic manufacturing
Increased US domestic manufacturing For personal use only Several US industry clusters may be close to a tipping point for domestic production US Department of Transportation; US Census Bureau; US Bureau of Economic Analysis; BCG analysis 7
Slide 34: US power market snapshot
US power market snapshot For personal use only Planned coal capacity retirements 2012 - 2021 Based on petitions for retirement, US power industry experts estimate closure of 50 GWs of capacity by 2020, representing $1Bn to $5Bn in near- term restoration spending in the US Source: The Energy Industry
Slide 35: Power projects
Power projects For personal use only Unit 1 retirement study Confidential ► Study for two coal-fired, steam-electric units ► Goal was to quantify the impacts of retiring unit Technical consultant services for plant closure Confidential ► Providing owner’s engineer services for plant decommissioning
Slide 36: Near term nuclear decommissioning projects
Near term nuclear decommissioning projects For personal use only Over $1B in new nuclear decommissioning projects over next 10 years ► Duke – Crystal River ► Dominion – Kewaunee ► Southern Cal Edison – San Onofre ► Entergy – Vermont Yankee Additional $1B to $2B in projects possible by 2020 as other
Slide 37: North American LNG terminals
North American LNG terminals For personal use only 11 Source: Office of Energy Projects, September 2013
Slide 38: LNG projects
LNG projects For personal use only Lake Charles 15MTPA LNG liquefaction and export terminal, IPMT for FEED BG Group ► Expansion of the existing LNG import terminal to add a LNG liquefaction plant, with a total export capacity of 15 MTPA Golden Pass LNG, pre-FEED planning Golden Pass LNG ► Connects t
Slide 39: UCOG field development
UCOG field development For personal use only ► WorleyParsons legacy and capabilities • Pioneered production related designs in western Canada more than 10 years ago • Refined techniques in the Bakken coal seam methane fields of Queensland Marcellus • Now across the shale oil & gas plays of the Unite
Slide 40: Forces influencing UCOG asset development
Forces influencing UCOG asset development For personal use only Operating principles / regulatory • Air emissions • Water management • Land use Well stream Field development composition decisions • Pressure / temperature / • Electrification flow • Artificial lift • Gas - oil ratio • Production profi
Slide 41: WorleyParsons UCOG offering
WorleyParsons UCOG offering For personal use only Operating principles / regulatory • Water planning • Geomatics & GIS mapping • Approvals management • Social license to operate support • Risk management Well stream Field development composition decisions • Standards for range of • Infrastructure co
Slide 42: Changing delivery mindsets
Changing delivery mindsets use only ► ‘Lean’ concept applications • Simplify, standardize, modularize, replicate ► Focus on management of projects, not re-engineering Traditional Routine/repeatable Percent personal engineering and design engineering and design Overall 0% 0% cost per 10% Project mgt
Slide 43: The new delivery model - shifting the cost equation
The new delivery model - shifting the cost equation For personal use only ► Expected life-cycle cost impact to unconventional resource field development Conventional E&P thinking Unconventional ‘manufacturing’ Asset costs Engineering Asset Costs thinking Engineering costs costs CURRENT FUTURE CURREN
Slide 44: UCOG projects
UCOG projects For personal use only Barnett produce water management study Confidential Sustainable full-field development (zero freshwater use) 235 wells to be drilled over six years Designed gathering, collection, central storage and treatment facility Modular design and constructability f
Slide 45: UCOG projects
UCOG projects For personal use only Global enterprise frame agreement Shell Covers US, Canada, Asia, and future developments in Australia, Europe, Africa, South America and Middle East Overall project delivery of surface facilities Development of global standardized project catalogue for use d
Slide 46: In summary
In summary For personal use only ► US experiencing renaissance due to supply of cheap gas ► Actively participating in UCOG projects and see the larger play in program management and full field development ► Well positioned to take advantage of both near term and longer term projects: • Continued exp
Slide 47: Sectors, customers, capability, diversification
For personal use only sectors Local/global customers capability diversification
Slide 48: Canadian opportunities
For personal use only Canadian opportunities Greg Conlon
Slide 49: Agenda
Agenda For personal use only ► Improve ► LNG ► WorleyParsonsCord ► Links with Latin America 2
Slide 50: Canada's Improve business
Canada’s Improve business For personal use only 3
Slide 51: Canada Improve
Canada Improve For personal use only ► Alliances or long-term contracts enable a deep 25+ understanding of customer drivers Improve contracts ► Services include • Delivery of expansion projects • Upgrades ~30% • De-bottlenecking Canada’s FY13 • Maintenance projects revenue ► Improve draws on the exp
Slide 52: Long standing Improve contracts
Long standing Improve contracts For personal use only 5
Slide 53: Recent Improve contracts
Recent Improve contracts For personal use only 6
Slide 54: For personal use only
For personal use only 7
Slide 55: Long term potential
Long term potential For personal use only Alberta oil sands sustaining capital/MRO projects Need native file to format to color pallet What is the source? 8 MRO = maintenance, repair and operations expenditures
Slide 56: Canada LNG
For personal use only 9 Canada LNG
Slide 57: Canadian LNG market outlook
Canadian LNG market outlook For personal use only Companies in public disclosure include British Columbia shale gas basin Canadian LNG shipping to North Asia market There are other customers not yet in public disclosure 10
Slide 58: WorleyParsons' offering
WorleyParsons’ offering For personal use only 11
Slide 59: LNG - market potential
LNG - market potential For personal use only 1 Upstream infrastructure 2013 to 2020 Total spend 2 Midstream / pipelines $40-$50 billion Available to 3 Export terminals WorleyParsons $5-$7 billion 12
Slide 60: WorleyParsonsCord
For personal use only 13 WorleyParsonsCord
Slide 61: WorleyParsonsCord
WorleyParsonsCord For personal use only ► Established in 1978 ► Direct hire construction ► Merit labor posture ► Strong reputation ► Mix of tier 1 and tier 2 customers ► Building for the future 14
Slide 62: Business model
Business model For personal use only Balanced portfolio between module yards and field construction Manage commercial risk with mix of commercial models • reimbursable (10%) • unit rate (30%) • reimbursable/fixed-fee (20%) • late conversion lump sum (40%) MSA multi year evergreen contracts C
Slide 63: Module fabrication
Module fabrication For personal use only ► Capacity 500 modules (~26,000 tonnes) pa ► Strong backlog with space over-utilization ► Plans to expand in 2014 WorleyParsonsCord Module Yard, Blackfalds, Alberta, Canada 16
Slide 64: Project profile
Project profile For personal use only Sunrise phase 1 SAGD field facilities Husky Energy 8 well pads / 49 well pairs Over 50 km of associated above ground and buried pipelines 17
Slide 65: Links with Latin America
Links with Latin America For personal use only Valparaiso, Chile 18
Slide 66: Links with Latin America
Links with Latin America For personal use only ► Leveraging Canadian • Technical capabilities • Customer relationships ► Infrastructure • Select phase − Ports and marine terminals − Bulk terminals − Tailings management − Water management ► MM&C • Brazil and Chile • All project phases − Iron ore − Co
Slide 67: In summary
In summary For personal use only ► Canadian business has sustainable growth potential • Improve • LNG • WorleyParsonsCord • Links with Latin America Ferro Carajas S11D Vale Inco 20
Slide 68: Sectors, customers, capability, diversification
For personal use only sectors Local/global customers capability diversification
Slide 69: Integrated offshore solutions
For personal use only Integrated offshore solutions Brian Evans
Slide 70: Agenda
Agenda For personal use only ► Evolution of offshore capabilities ► Offshore centers of excellence ► Project focus: Hebron ► Enhanced field development systems ► Integrated offshore solutions 2
Slide 71: WorleyParsons historical overview
WorleyParsons historical overview Up to 2003, Worley For personal use only 2004 2005 2006 2007 2008 4
Slide 72: For personal use only
For personal use only 2004 2005 2006 2007 2008
Slide 73: WorleyParsons historical overview: 2004
WorleyParsons historical overview 2004 project highlights For personal use only BHP Billiton Angostura development 2004 2005 2006 2007 2008 6
Slide 74: WorleyParsons historical overview: 2005
WorleyParsons historical overview 2005 project highlights For personal use only Woodside Angel Gas Project 2004 2005 2006 2007 2008 7
Slide 75: WorleyParsons historical overview: 2006
WorleyParsons historical overview 2006 project highlights For personal use only ADMA OPCO Umm Shaif gas injection facilities Woodside North Rankin 2 development (E&P) 2004 2005 2006 2007 2008 8
Slide 76: Subsea acquisitions
Subsea acquisitions For personal use only ► 2007 │ Acquisition of Sea Engineering ► 2008 │ Acquisition of INTEC Engineering 2004 2005 2006 2007 2008 9
Slide 77: For personal use only
For personal use only 2004 2005 2006 2007 2008
Slide 78: WorleyParsons historical overview: 2008
WorleyParsons historical overview 2008 project highlights For personal use only Agip KCO Kashagan East field development BP Gulf of Mexico brownfield engineering services ConocoPhillips Australia services contract 2004 2005 2006 2007 2008 11
Slide 79: WorleyParsons historical overview: 2009
WorleyParsons historical overview 2009 project highlights For personal use only Husky Liwan 3-1 area facilities Chevron Wheatstone subsea facilities 2009 2010 2011 2012 2013 12
Slide 80: WorleyParsons historical overview: 2010
WorleyParsons historical overview 2010 project highlights For personal use only ConocoPhillips ExxonMobil Jasmine area development Hebron offshore platform Exxon Neftgas Sakhalin-1 Arkutun Dagi Mobil Producing Nigeria satellites phase 2 Woodside Brownfield maintenance 2009 2010 2011 2012 2013 13
Slide 81: WorleyParsons historical overview: 2011
WorleyParsons historical overview 2011 project highlights For personal use only Statoil Bressay platform Woodside North Rankin 2 development hookup and commissioning 2009 2010 2011 2012 2013 14
Slide 82: WorleyParsons historical overview: 2012
WorleyParsons historical overview 2012 project highlights For personal use only Chevron Rosebank field development Chevron INPEX Lucapa Field subsea facilities Icthys field development Hess Equus topsides and floating system 2009 2010 2011 2012 2013 15
Slide 83: WorleyParsons historical overview: 2013
WorleyParsons historical overview 2013 project highlights For personal use only Chevron Maersk Oil Buckskin and Moccasin Al Shaheen field facilities Samsung Heavy Ind. Egina FPSO modules Chevron global brownfield engineering MSA Addax global alliance agreement 2009 2010 2011 2012 2013 16
Slide 84: For personal use only
For personal use only 2009 2010 2011 2012 2013 17
Slide 85: Offshore centers of excellence
For personal use only Offshore centers of excellence 18
Slide 86: Offshore centers of excellence: present day
Offshore centers of excellence Present day For personal use only 19
Slide 87: Offshore centers of excellence: geographic presence
Offshore centers of excellence Geographic presence For personal use only London Beijing Houston Hyderabad Kuala Lumpur Perth 20
Slide 88: Offshore centers of excellence: hub capabilities
Offshore centers of excellence Hub capabilities For personal use only Houston Perth Arctic and harsh environment Concept studies (Select) developments Decommissioning Asset integrity solutions Dynamic simulation for logistics Concept studies (Select) Field development planning Fi
Slide 89: Project focus: Hebron topsides
Project focus: For personal use only Hebron topsides 22
Slide 90: Hebron topsides development
Hebron topsides development For personal use only Customer ExxonMobil Canada Location St. John’s, Canada Execution St. John’s and Houston Largest open floatover in the world Heavy oil field, 175k bpd crude and 315k bpd liquids handling FEED and overall project management Special emphasis on
Slide 91: FY14 areas of focus
For personal use only FY14 areas of focus 24
Slide 92: Global oil production to 2022
Global oil production to 2022 For personal use only By 2022, offshore production will account for 59% of new cumulative source production for IOCs 25 Image source: PFC Energy, “Deepwater Drives Global IOC Growth,” May 2013
Slide 93: Offshore CAPEX 2012-2018
Offshore CAPEX 2012-2018 For personal use only A migration into deeper waters in US, Latin America and Africa M.E:US$74bn Australasia:US$54bn Shallow water Deepwater Ultra deepwater 0-499m 500-1499m 1500m+ 26 Image source: Infield Systems, “Global Offshore Oil and Gas Outlook” February 2013
Slide 94: Potential in Arctic reserves
Potential in Arctic reserves For personal use only 174 discovered fields in Arctic, 83% of discovered resources are Russian 27 Image source: Infield Systems, “Global Offshore Oil and Gas Outlook” February 2013
Slide 95: FY14 offshore areas of focus
FY14 offshore areas of focus For personal use only Arctic regions Africa Brazil Gulf of Mexico Western Australia Norway 28
Slide 96: Enhanced field development solutions
Enhanced field For personal use only development solutions 29
Slide 97: Enhanced field development
Enhanced field development For personal use only ► In-depth quality decision making (QDM) processes integrated with Select/INTECSEA conceptual engineering ► Enabling customers to make smarter offshore investment decisions ► Assisting customers to manage acquisition, appraisal, development and improv
Slide 98: Total integrated solutions
For personal use only Total integrated solutions 31
Slide 99: Efficiencies through integration
Efficiencies through integration For personal use only ► A single integrated project delivery service, from wellhead to market ► Customers have a single point of accountability ► Increased transparency and simplified communication ► Cost benefits and schedule preservation ► Better safety performance
Slide 100: Chevron Rosebank customer testimonial
For personal use only “On the Rosebank project, Chevron has realized cost and schedule savings from WorleyParsons’ integrated execution through improved efficiency and fewer interfaces.” - Alan Scott, Chevron Rosebank facilities project manager 33
Slide 101: In summary
In summary For personal use only ► An impressive history in the offshore industry ► Offshore centers of excellence, developed and expanding ► Global capability with local delivery ► Integrated and complete offering: WorleyParsons and INTECSEA ► Exciting future driven by strong, emerging offshore mar
Slide 102: Sectors, customers, capability, diversification
For personal use only sectors Local/global customers capability diversification
Slide 103: Norwegian Continental Shelf
For personal use only Norwegian Continental Shelf Kristin Færøvik
Slide 104: Agenda
Agenda For personal use only ► Norway context ► A proud history ► What we do ► A perfect match ► Making a difference 2
Slide 105: A major exporter of hydrocarbons – and technology
A major exporter of hydrocarbons – and technology For personal use only A major supplier of natural gas Norwegian exports totaled to Europe and crude oil to the USD159B in 2012, with a net spot market trade surplus of USD73B 3
Slide 106: Investments set to continue
Investments set to continue For personal use only (AUD44B) Exploration and concept studies Well costs Pipelines and onshore facilities New subsea facilities New fixed and floating facilities Existing facilities Source: The Norwegian Petroleum Directorate, February 2013 4
Slide 107: A world class exploration basin...
A world class exploration basin... For personal use only Source: Teknisk ukeblad (Technical Weekly Magazine) 5
Slide 108: ...and ageing infrastructure
...and ageing infrastructure For personal use only (AUD22B) 6 Source: Rystad Energy
Slide 109: Rosenberg: years of continuous operation
More than 117 years of continuous operation For personal use only 7
Slide 110: Great facilities in the heart of Norway's oil capital
Great facilities in the heart of Norway’s oil capital For personal use only Main types of business • EPC projects • Fabrication (engineering by others) • Hookup and commissioning 8
Slide 111: What we do
For personal use only 9 What we do
Slide 112: A perfect match: it goes both ways
…it goes both ways For personal use only ► Shared values and commitment to zero harm ► Rosenberg gains • Access to global engineering capacity and capability • Improve systems and tools ► WorleyParsons gains • Access to the Norwegian market • Enhanced capability: − Construction friendly design − Ons
Slide 113: Already making a difference
Already making a difference For personal use only ► Leverage relationships with global customers 11
Slide 114: Off to a good start
Off to a good start For personal use only ► Fabrication and EPC contract secured with GE – engineering support from INTECSEA ► FEED contract with ConocoPhillips for Ekofisk capacity increase 12
Slide 115: In summary
In summary For personal use only ► Rosenberg acquisition provides many exciting opportunities • Access to the Norwegian market • Offshore fabrication facilities ► Rosenberg can leverage WorleyParsons’ • Capacity and capability • Improve systems and processes ► Combined integrated solutions for our c
Slide 116: Sectors, customers, capability, diversification
For personal use only sectors Local/global customers capability diversification
Slide 117: Growth markets in chemicals and mining
For personal use only Growth markets in chemicals and mining Mark Southey
Slide 118: Why Chemicals?
Why Chemicals? Several concurrent growth drivers For personal use only US market continues to provide abundance of opportunities due to high shale gas activity Ongoing investment in Asia / China Middle East investment continues with shift to high value products Global demand growth for ferti
Slide 119: Our strategy is delivering results…
Our strategy is delivering results… For personal use only Focus geographies • USA • Middle East • China/Asia Leverage our Chinese competitive advantage globally Partnering with key strategic customers 2 2
Slide 120: Customer insights
For personal use only 4 Customer insights
Slide 121: Global success
For personal use only 5 Global success
Slide 122: Celanese Project Fairway
Celanese Project Fairway For personal use only Project Fairway Celanese ► EPCM for greenfield development of methanol facility in Clear Lake, Texas ► Facility will produce 1.3mtpa Methanol, using abundant natural gas in US Gulf Coast region as feedstock ► Production scheduled to commence mid-2015 6
Slide 123: OMPET PTA/PET
OMPET PTA/PET For personal use only Sohar PTA/PET Project Oman International Petroleum Industry Company (OMPET) ► PMC services ► Greenfield PTA (purified terephthalic acid) /PET (polyethylene terephthalate) plant ► Capacity 1.1mtpa PTA and 0.5mtpa PET in two phases ► PTA plant will provide feed stoc
Slide 124: Iowa Fertilizer
Iowa Fertilizer For personal use only Iowa Fertilizer Complex Iowa Fertilizer Company ► Greenfield nitrogen fertilizer manufacturing facility ► TIC approx US$1.4B ► Production of1.5-2mtpa ammonia, urea, urea ammonium nitrate and diesel exhaust fluid ► PMC and Owner’s Engineer support services 8
Slide 125: BASF sustaining capital China
BASF sustaining capital China For personal use only Support for BASF project portfolio Improve project management team in China Deliver value add solutions across multiple projects Looking to grow our Improve relationships with our strategic customers 9
Slide 126: Building a leading Chemicals business
For personal use only Building a leading Chemicals business, rapidly increasing industry profile and business diversity 10
Slide 127: Growth market – why mining?
Growth market – why mining? For personal use only “we face declining grades, longer haul distances and rising strip ratios; and therefore must target deeper deposits” Andrew Mackenzie CEO BHP Billiton Melbourne Mining Club 06 June 2013 “…we face declining grades, longer haul distances and rising str
Slide 128: The mining value chain
The mining value chain For personal use only 12
Slide 129: A market leader in mining
A market leader in mining For personal use only ► Acquired TWP Projects in March ► South Africa and Peru ► 1,000+ people ► Key capabilities • Underground mining • Precious metals Processing • EPCM (throughout Africa) 13
Slide 130: Impala No.17 shaft
Impala No.17 shaft For personal use only Impala No.17 Shaft, EPCM Impala Platinum WorleyParsonsTWP is providing full EPCM services for the design and development of Impala’s 17 main shaft, refrigeration and ventilation shafts 14
Slide 131: Bakubung platinum mine
Bakabung platinum mine For personal use only Bakubung platinum mine EPCM Wesizwe Platinum WorleyParsonsTWP has been appointed EPCM contractor for Wesizwe Platinum’s circa A$1Bn Bakubung platinum mine 15
Slide 132: Chuquicamata mine
Chuquicamata mine For personal use only Chuquicamata mine, owner’s team representative Codelco Offices: Pretoria, Lima, and Santiago Move from open pit to underground mining Vent shaft of 11m diameter and 1,000m depth 16
Slide 133: Global leader in mine development…
Global leader in mine development… For personal use only Leverage global footprint and South Africa capability 17
Slide 134: The Mining Value Chain
The Mining Value Chain vite wt Se 18 Exploration Mine if Oy ks ki ~ Environment —Non-Process = " & Mine . ~ Hydrometallurgy Pyrometallurgy & Evaluation Planning Handling Processing “e ae =e & Approvals Infrastructure Development Management &: ee is
Slide 135: Growth markets
Growth markets For personal use only Well positioned for growth in chemicals and mining 19
Slide 136: Sectors, customers, capability, diversification
For personal use only sectors Local/global customers capability diversification 20
Slide 137: Africa update
For personal use only Africa update Francis McNiff
Slide 138: Agenda
Agenda For personal use only ► Our local presence ► Capability expansion • South Africa mining • West Africa deep water ► Geographic expansion • East Africa 2
Slide 139: Local African presence
For personal use only Local African presence 3
Slide 140: Local content
Local content For personal use only DeltaAfrik Nigeria ► Grew to market leader in Nigeria off back of local content mandate ► Key goal of enhancing Nigerian content and capability ► Over 600 local Nigerian employees ► Structured training and development programs ► We sponsor malaria and cholera prev
Slide 141: Local African presence
Local African presence For personal use only ► 27 offices ► Hubs in • Nigeria • South Africa ► Operations in • Angola • Ghana • Namibia • Mozambique • Numerous other country project offices 5
Slide 142: Capability expansion
Capability expansion For personal use only Leveraging INTECSEA • Expansion of deepwater capability in Nigeria • Enhanced operational management controls in Angola Mining capability • TWP integration in South Africa 6
Slide 143: South Africa mining
For personal use only 7 South Africa mining
Slide 144: WorleyParsonsTWP integration
WorleyParsonsTWP integration For personal use only ► Good take up across combined business and interaction of staff ► Transition phase completed successfully ► Transformation phase underway 8
Slide 145: Wins and opportunities
Wins and opportunities For personal use only Synergistic wins • Multiple South African iron ore, coal plant studies • Select phase studies enable pull-through for downstream phases Globalization opportunities • Leveraging TWP to pursue study work in United Kingdom, US, Papua New Guinea • Secured
Slide 146: West African deepwater
For personal use only West African deepwater 10
Slide 147: Forecast
Forecast For personal use only ► The Gulf of Guinea will be the most The Golden Triangle important oil producing region of Africa Gulf of • 96% of total offshore production in Mexico Oil: 5-7 Bbl 2011* Gas: 10 Tcf** • Challenges in marine transportation Gulf of costs, security and local infrastructu
Slide 148: Discoveries and development
Discoveries and development For personal use only Angola hot spot for deep offshore West African deepwater offshore oil & gas discoveries, 2009-2012* discoveries Mauritania, Ghana, Republic of 18 16 Congo and Cameroon are the 14 focal point for drilling / new 12 discoveries 10 8 Nigeria has lo
Slide 149: Projects
Projects For personal use only Egina 34KT FPSO detailed design and engineering Samsung Heavy Industries ► Modularized topsides ► Lagos based - demonstrates our ability to engage and invest in local capacity building and development Lucapa subsea facilities, FEED services Chevron ► 900m to 1800m deep
Slide 150: Geographic expansion
Geographic expansion For personal use only Recent expansion centers Equatorial Guinea • ExxonMobil Improve • Marathon offshore FEED Mozambique • Anadarko LNG • Vale Rail PMC Tanzania • Leveraging relationships with Chinese investors 14
Slide 151: East Africa – the new frontier
For personal use only East Africa – the new frontier 15
Slide 152: East Africa overview
East Africa overview For personal use only Current production in East Africa is only from South Sudan Future developments are focused on four key countries Country Notable oil & gas Proposed developments discoveries Mozambique 32-65 Tcf recoverable gas - A1 Offshore gas 75 Tcf gas in place - A4 LNG
Slide 153: WorleyParsons experience in East Africa
WorleyParsons experience in East Africa For personal use only 17
Slide 154: Project profile
Project profile For personal use only Mtwara to Dar Es Salam pipeline Tanzanian Petroleum Development Corporation ► PMC for the Mnazi Bay and Songo Songo gas processing plant and pipelines ► 542km of pipelines and 2 gas treatment plants ► 784 MMSCFD transport capacity ► Funded by Chinese Government’
Slide 155: In summary
In summary For personal use only ► Local content ► Continue to diversify ► Established position in West African deepwater ► Synergies of TWP acquisition ► Growth opportunities are abundant ► Well positioned • Local presence • Early engagement • Global capability • Customer relationships – locally an
Slide 156: Sectors, customers, capability, diversification
For personal use only sectors Local/global customers capability diversification 20
Slide 157: Latin America update
For personal use only Latin America update Mark Trueman
Slide 158: Agenda
Agenda For personal use only ► Macro overview ► WorleyParsons in LAM ► Our markets and projects Puerto Las Losas, Huasco, Chile CODELCO, PTMP Minerals Treatment Plant, Chuquicamata 2
Slide 159: Latin America macro overview
Latin America macro overview For personal use only ► Area: 21.1 million km2 % Real GDP Growth 2013 (USA 9.83 million km2) ► Population: 581.4 million (USA 316.7 million) ► GDP: US$5.348 trillion (USA US$16.3 trillion) ► GDP (PPP): US$12,519 (per capita) ► Spoken languages: Spanish and Portuguese 3 S
Slide 160: WorleyParsons in Latin America
WorleyParsons in Latin America For personal use only ► Locations 12 offices 5 countries • Chile • Brazil • Colombia • Peru • Ecuador ► Resource development focus • Minerals, Metals & Chemicals • Hydrocarbons • Infrastructure 4
Slide 161: Growth and unification
Growth and unification For personal use only 2013 LAM revenue (AUD$M) 400 2014 FY09 FY10 FY11 FY12 FY13 5
Slide 162: Minerals, Metals & Chemicals
Minerals, Metals & Chemicals For personal use only Mine projects budget distribution ► Market continues to develop Africa ► Significant headroom for growth Oceania Asia ► Driven by Europe • Global resources demand North America • Emergence of Brazil as an Latin economic powerhouse America ► Commodit
Slide 163: Minerals, Metals & Chemicals: ACAI acrylic acid complex
Minerals, Metals & Chemicals For personal use only ACAI acrylic acid complex, Brazil BASF-YPC ► Full EPCM awarded for Brazil ► EP and construction support awarded for China ► Production scheduled for 2014 7
Slide 164: Minerals, Metals & Chemicals: S11D iron ore
Minerals, Metals & Chemicals For personal use only S11D 90 MTPA iron ore beneficiation plant, Brazil Vale Inco ► Workshare Belo Horizonte - Edmonton ► Detailed Design ► Construction support services ► Largest greenfield iron ore mining project 8
Slide 165: Minerals, Metals & Chemicals: Chuquicamata mine
Minerals, Metals & Chemicals For personal use only Chuquicamata mine, Chile Codelco ► Pretoria, Lima and Santiago offices ► Owner’s team representative for conversion to underground ► Vent shaft of 11m diameter and 1,000m depth 9
Slide 166: Hydrocarbons
Hydrocarbons For personal use only 2013 CAPEX for national oil companies (USD billion) ► Significant CAPEX for national oil 50 companies ► International oil companies renewed 40 interest in Latin America 30 ► PEMEX is looking to follow Petrobras model 44.8 45.0 20 ► Argentina has world’s 3rd highest
Slide 167: Hydrocarbons: Peregrino II
Hydrocarbons For personal use only Peregrino II EPMA Pre-FEED/FEED, Brazil Statoil ► Workshare Rio de Janeiro - London ► Wellhead platform for oil production ► 50,000 to 60,000 bpd 11
Slide 168: Hydrocarbons: Esmeraldas refinery upgrade
Hydrocarbons For personal use only Esmeraldas refinery upgrade, Ecuador EP PetroEcuador ► Production of 110,000 bpd ► Largest refinery in Ecuador ► Significant revamp and the modernization effort ► Three plant shutdowns ► Multiple international and local EPC contracts 12
Slide 169: Infrastructure
Infrastructure For personal use only ► Prosperity growth driving LAM infrastructure investment 2013-2021 (US$B) infrastructure demand (energy, water, ports, rail) ► International investment into 312 energy infrastructure 276 ► Increasing use of concession model to attract private funding 356 1,536 ►
Slide 170: Infrastructure: Belo Monte hydropower project
Infrastructure For personal use only Belo Monte hydropower project Norte Energia SA (includes ElectroBras, Vale et al.) ► One of the largest hydro power projects in the world ► Over the last 7 years - 41 social and environmental programs during construction - Relocation of 5,000 urban families and 1
Slide 171: Infrastructure: Chaglla hydropower station
Infrastructure For personal use only Chaglla hydropower station, Peru Odebrecht Group ► 2,500 GWh/year capacity ► Hydropower integrated into national grid ► Owner´s engineer services 15
Slide 172: In summary
In summary For personal use only ► WorleyParsons has been working hard to establish and position in Latin America ► Growth through acquisitions and organic growth Minera Los Pelambres ► Leverage capabilities from other Salamanca, Choapa regions RNEST, PETROBRAS State of Pernambuco ► We remain focuse
Slide 173: Sectors, customers, capability, diversification
For personal use only sectors Local/global customers capability diversification
Slide 174: Enabling capabilities
For personal use only Enabling capabilities Andy Cole
Slide 175: Agenda
Agenda For personal use only ► Defining “Enabling capabilities” ► Examples of how these specialist skills are employed and the value added to our customers ► Introducing WorleyParsons Consulting Involvement within the Select phase can create a ‘trusted advisor’ relationship that positions us for inv
Slide 176: Non-technical risk
Non-technical risk For personal use only ► Our customers value our Reporting frequency broad cross-sector offering by type of delay to help them manage non- Type of delay reported technical risk Non-technical risk 73% (political or stakeholder related) • Gaining the social licence to operate Commerc
Slide 177: Enabling capabilities
Enabling capabilities For personal use only Example specialist skills • Community/stakeholder engagement services • Environmental approvals management • Regional master planning & remote site selection • Advanced analytical methods (to improve decision quality) Addressing non-technical risks tha
Slide 178: Community engagement
Community engagement For personal use only 5
Slide 179: Landholder engagement
Landholder engagement For personal use only ► GIS enabled tool ► Display properties with proposed facilities overlayed ► Records information in real time while in the field Peter Beck/Corbis 6
Slide 180: Environmental impact assessment and approvals management
Environmental impact assessment and approvals management For personal use only Environmental impact assessment Australia Pacific LNG ► EIS for $35B project, in 10 months ► 6,000+ stakeholders consulted ► All major approvals secured ► Exceptional HSE performance ► Winner of the Queensland Engineering
Slide 181: Regional master planning
Regional master planning For personal use only Nationwide master planning Government of Mongolia ‘Whole of nation’ development strategy to leverage minerals and metals deposits • Industrialization blueprint • High level master plan Local multidisciplinary team Identified • Extent of existing r
Slide 182: Optimal site selection
Optimal site selection For personal use only British Columbia LNG project Confidential customer Qualitative assessment and multi-criteria decision analysis techniques to identify sites Evaluation criteria • Environmental impact • Community concerns • 1st Nations consultations • Pipeline routing
Slide 183: Engineering / logistics
Engineering / logistics For personal use only Distance to Distance Coast to Plant Navigable Water Height ASL Distance to Population Centre Drainage and Flooding Site Road Access Interference with infrastructure 10
Slide 184: Environmental
Environmental For personal use only Vegetation Acid Sulfate Risk Wetlands and Water bodies Avifauna Vulnerable Species Conservation Estate Marine Habitat 11
Slide 185: Social
Social For personal use only Aboriginal & Cultural Native title Heritage Shipwreck Land Tenure Pearling leases Land use Mining Tenure 12
Slide 186: Combined … bringing it all together
Combined … bringing it all together For personal use only Suitable Unsuitable 13
Slide 187: Nationwide
For personal use only 14 Nationwide
Slide 188: Nationwide
For personal use only 15 Nationwide
Slide 189: Nationwide
For personal use only 16 Nationwide
Slide 190: Advanced analytical methods
Advanced analytical methods For personal use only ► Real time feedback • Investigate options • Data based decisions − Defensible • Quantify and understand risk − Traditionally ~ weeks of work ► Blast analysis tool • Move blast sources • Move building sites • Reclassify building risk − Type and occup
Slide 191: Consulting practices
Consulting practices For personal use only Social performance and stakeholder Desalination engagement Water resources (hydrology and Environmental management and hydrogeology) approvals Marine sciences Master planning and site selection Coastal and ocean engineering Advanced analysis
Slide 192: WorleyParsons Consulting
WorleyParsons Consulting For personal use only In established centres – such as Perth – where a long history of consulting exists • 80% of all Deliver projects had their beginning in early phase consulting Translate this success to other locations Success racking begun • FY13 over 700+ project
Slide 193: WorleyParsons Consulting
WorleyParsons Consulting For personal use only WorleyParsons Consulting will be the preferred global employer of leading industry consultants, delivering innovative solutions. As trusted advisors with deep industry knowledge, we will collaborate to deliver integrated outcomes that demonstrate sustai
Slide 194: Sectors, customers, capability, diversification
For personal use only sectors Local/global customers capability diversification